Oh DeereAgricultural machinery manufacturer Deere does everything right in Q2, but still sheds 14% as part of a wider Wall Street sell-off.
- Deere makes tractors. Lovely tractors. But that’s not enough for investors as shares fell 14.07% on Friday, wiping out its gains for the year. Retailers dragged down US stocks and Deere stalled too, despite Q2 net income up 17%, a sales beat of $13.4bn, and an EPS of $6.81, beating expectations of $6.69.
- The US tractor firm had been chugging along nicely with a strong report, but it seems investors have got used to good news from Deere and are looking further ahead, with the agricultural industry threatened by increases to fuel and fertilizer costs, despite a projected continuation of profits for crop farmers. Plus Deere mentioned that ever-present menace – ”supply chain pressures”.
- Nevertheless, Deere says there’s still high demand for its shiny machines, with its full-year earnings forecast increased from $7.0bn to $7.4bn, so it has to focus more on production in the second half and solve some of those supply issues. Like everyone else then. Good luck with that.
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